21/08/2008 - 13:25

ACCC launch proceedings against SeNevens

21/08/2008 - 13:25

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The corporate watchdog has launched legal proceedings in the Federal Court against Ascot-based nappy manufacturer SeNevens International Ltd for alleged deceptive conduct.

ACCC launch proceedings against SeNevens

The corporate watchdog has launched legal proceedings in the Federal Court against Ascot-based nappy manufacturer SeNevens International Ltd for alleged deceptive conduct.

The Australian Competition and Consumer Commission today started the litigation process, alleging the company had engaged in "false, misleading and deceptive" conduct in the promotion of its 100 per cent biodegradable nappies.

The ACCC alleges that the Safeties Nature Nappy products, which were pulled from shelves in May, are not 100 per cent biodegradable and contravened the Trade Practices Act.

In May the company announced to the market that its nappies were only 80 per cent biodegradable after six months.

It followed notices issued to SeNevens in November 2007 that required it to prove that the nappy was biodegradable and leak proof.

The ACCC have also launched proceedings against SeNevens' former executive director Charishma Seneviratne, for allegedly being knowingly concerned in or a party to the contravening conduct.

"The ACCC is seeking a range of remedies including injunctions restraining the respondent from engaging in the conduct and declarations concerning the conduct alleged by the ACCC," the watchdog said.

The matter has been listed for a directions hearing in Hobart on October 7.

Shares in SeNevens have been placed in a trading halt pending the release of an announcement. The company's shares last traded at 9 cents, down from 11.5c.

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